Wonga to pay £2.6m compensation for sending fake legal letters
As if charging a sky-high APR was not dastardly enough for Wonga, they've also been sending out fake legal letters to borrowers who fell behind with their loan repayments.
Could they get any worse!? Yep - in some cases they added the "administration costs" of sending these letters to the borrowers debt.
The Financial Conduct Authority (FCA) uncovered correspondence sent to borrowers from “Chainey, D’Amato & Shannon” and “Barker and Lowe Legal Recoveries” both of which are not only not authorised to recover debts but, don't actually exist!
The FCA believe that around 45,000 customers were targeted between 2008 and 2010 who will now be in line for compensation from Wonga. However, the FCA has said that the payment might be against their existing loan as opposed to a cash settlement.
Tim Weller, interim Wonga CEO, has said "We would like to apologise unreservedly to anyone affected by the historical debt collection activity and for any distress caused as a result. The practice was unacceptable and we voluntarily ceased it nearly four years ago."
We should have all listened to Papiss Cisse.